SCIC plans to invest VND4 trillion in 2012

News - The State Capital Investment Corporation (SCIC) planned to invest VND4 trillion in 2012, state-run online newspaper VnEconomy quoted SCIC’s representative as saying at a year-end meeting.

The representative said that the reason for SCIC to consider investing in 2012 was stock price attractiveness. “there are banks who are making profit but their shares are trading under par value, the valuation is really cheap” SCIC’s representative said.

SCIC planned to invest into 4 major groups: 1) investing under the government’ instruction; 2) existing investments: SCIC will remain and raise state-stake in some selective corporation; 3) investing in projects, securities and bonds; and 4) buying state-corporations’ stake in non-core industries when they have to divest.

SCIC defined its self as a major buyer when state corporations have to close their position in non-core businesses from now to 2015 under the government instruction.

“Specifically in the banking industry, many corporations hold stakes in commercial banks and we will cooperate with tem to consider buying their stakes in banks” SCIC’s representative said.

SCIC representative said last year the corporation invested VND586 billion, meeting 22.28% of the year plan of VND2,629 billion. However, SCIC rarely bought any stocks as it mainly invested in bonds and long term investment in companies.

In 2011, SCIC made a pretax profit of VND3.207 trillion up 28.2% on year and surpassing year-target by 10.2% with earnings-to-equities of 11.8% and earnings –to- state capital of 16.4%.

As of December 31, 2011, SCIC had invested VND6.5 trillion including VND3 trillion in state-owned companies, VND2.7 trillion stake in companies and VND800 billion bonds. SCIC’s stake in companies are mostly in Vinh Son – Song Hinh Hydropower JSC. (VSH); Thac Ba Hydropower JSC. (TBC) and Hai Phong thermal power company, the representative said.